Private and public institutional investors, individual investors and money changers offered more money than the Bank of Jamaica was prepared to accept and its 6 per cent fixed rate certificate of deposit auction on Wednesday.
The central bank uses these instruments to remove excess cash from circulation, locking the funds away to help contain inflationary pressures arising from reduced production of goods and services following Hurricane Melissa.
In Wednesday's auction, 223 bids, valued at $38.7 billion were submitted, but the bank accepted 176 bids, amounting to $29.5 billion.
The average interest rate demanded was 6 per cent per year.
The Bank of Jamaica says the total volume of certificates of deposit now outstanding stands at $133.3 billion.
comments powered by Disqus
All feeds
